The European Commission has rolled up its sleeves to prepare the most comprehensive cryptocurrency regulation ever seen. The European Commission, which has been collecting information about cryptocurrencies for some time, has published a regulation draft covering cryptocurrencies in the light of this information. These decisions by the European Commission will directly affect companies such as Facebook that are considering to issue their own cryptocurrency.
The regulation draft prepared by the European Commission on cryptocurrencies was leaked to the Internet last week. According to the report of Bloomberg, the Commission came together today and made new decisions regarding cryptocurrencies. The commission officially published this draft, which was leaked last week after the meeting. We can divide some items in the meeting and the draft into three main headings in summaries.
European Passport to Crypto Money Companies
According to the articles in the bill, the European Commission plans to subject cryptocurrency companies across the continent to common laws. As a result, the Commission wants to prepare a broad framework that will cover every cryptocurrency producer operating within the borders of the European Union and its company in general.
The proposal in the regulation draft prepared for crypto currencies; To ensure that crypto money companies established within the borders of the European Union are audited first on a national basis and then on a supranational basis. It is planned to give a kind of European passport to companies that have received national approval and have been given the green light for their activities. These companies will be able to operate in any country within the EU.
Investors’ Safety Red Line
The Commission plans to impose special restrictions on cryptocurrency companies to protect European citizens from potential loss of personal data and money. For this purpose, the capital requirements of crypto money companies may be different than other companies.
These companies will also be obliged to follow a transparent policy regarding the cryptocurrencies they produce and will share the whitepaper they prepared with both regulators and consumers. In case of doubt, companies can be audited not only by national regulators but also by authorities such as the European Banking Authority and the European Central Bank.
There Are More Comprehensive Decisions Regarding Fixedcoins
The European Commission has made the definition of cryptocurrencies in the draft law prepared this month and has drawn some limits on this issue. There are sharp differences between cryptocurrencies and fixedcoins in this draft, which you can see in more detail in our article on the subject.
This distinction made by the Commission between cryptocurrencies and fixedcoins remains valid after today’s meeting. Believing that fixedcoins to be developed by private companies such as Facebook can be risky for financial stability, European officials plan to impose stricter restrictions on fixedcoin production. Accordingly, companies producing hardcoins;
- Having a capital of at least 350 thousand euros,
- To keep a fiat currency reserve in order to support the fixed coin they produce,
- Before producing a fixedcoin that is not indexed to the euro, it should be examined by the EU authorities and
- Consumers using this fixedcoin should not pay any interest in any way.